Buy Container Corp; target of Rs 1760: Firstcall Research

Firstcall Research's report on Container Corporation of India

"Container Corporation of India (CONCOR), a public enterprise is one of the dominant players in Indian logistics industry. Net sales of the company have increased by 17.15% Rs. 14517.90 million in the Dec quarter as against Rs. 12392.51 million over the corresponding quarter in the previous year. Net profit grew by 20.64% of Rs. 3010.80 million in Q3 FY15 as compared to Rs. 2495.72 million in Q3 FY14. Operating profit or EBDITA rose by 20.74% to Rs. 4520.90 million in Q3 FY15 from Rs. 3744.25 million in the same quarter previous year. Total Income has increased from Rs. 13280.50 million for the quarter ended December 31, 2013 to Rs. 15370.10 million for the quarter ended December 31, 2014. Revenues from EXIM division rose by 23% to Rs. 11886.10 million in Q3 FY15 when compared to Rs. 9626.40 million in the corresponding quarter of previous year."

"CONCOR has no long term or short term debt, thus no interest burden on already low profit margins. With improvement on the economic front and increase in international trade, CONCOR will definitely improve its financial strength, being one of the major players in the organized logistics industry in India. Thus we recommend ‘BUY’ for the scrip with a target price of Rs 1760 medium to long term investment", says Firstcall Research Report.

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